Following the EU-US announcement on a common approach to
central clearing counterparties (CCPs), US counsel are
analysing future implications.
The long-awaited move has unsurprisingly been strongly
welcomed. That the two sides would finally agree on the issue
can only be a boost for transatlantic regulatory
"As a practical matter, US-EU agreement on this issue is
positive in that it enables CCPs to move forward with a clear
path, said Edward Rosen, Partner at
But although positive in general, there are also potential
downsides. After the initial euphoria, these seem to stem from
inconsistency with domestic law.
"The US approach does not seem to me to be consistent with
Dodd-Frank and, if adopted universally, would impose
potentially significant costs and burdens," said Rosen.
According to Rosen, those costs and burdens would land
directly on non-US market utilities and, indirectly on their
participants. "These costs do not seem warranted...